US Stocks’ Peak-Rate Party Gets Spoiled by a Lousy Treasury Sale

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 50%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

Just when it looked like stocks were making a bullish turn, a troubling Treasury auction slammed the brakes on the market’s momentum.

The $20 billion 30-year Treasury auction went off at the highest rate since 2007 at 1 p.m. in New York Thursday. Within minutes the S&P 500 Index tumbled, falling as much as 1.2% before regaining its footing. The Cboe Volatility Index, also known as the VIX or Wall Street’s fear index, spiked above 17. And the selloff in the small-cap Russell 2000 Index accelerated, pushing it to it’s lowest close in months.

But sentiment reversed after the 30-year Treasury auction, which drew weak demand and weighed heavily on the broader market sentiment. Swap contracts linked to future interest-rate decisions pushed the odds of another quarter-point hike back to about 50%, up from about 30% as recently as Wednesday. The Treasury auction was awarded at 4.837%, nearly four basis points higher than its yield in pre-auction trading at the bidding deadline. Demand fell short of dealers’ expectations, despite being the highest-yielding long-bond auction of its kind since 2007.“While Treasury auctions really only have an impact on the day of it in terms of market reaction, it’s still a messaging signal on demand,” said Peter Boockvar, chief investment officer at Bleakley Financial Group LLC.

If Thursday’s drop in the S&P 500 holds, it would snap a four-day winning streak — the longest since August — that came after a number of Fed officials said the rout in bond markets may cancel out the need to raise rates again. The message was reiterated on Wednesday, when Fed Governor Christopher Waller said the central bank can watch and see what happens before taking further action.

이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 83. in KR
 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Asia Stocks Set to Follow US Gains on Rate Outlook: Markets Wrap - BNN BloombergAsian stocks are poised to open higher after US equities were buoyed by Wall Street scaling back wagers on Federal Reserve rate hikes. Oil edged lower, following its biggest rally since April.
출처: BNNBloomberg - 🏆 83. / 50 더 많은 것을 읽으십시오 »

Asia Stocks Set to Follow US Gains on Rate Outlook: Markets Wrap(Bloomberg) -- Asian stocks are poised to open higher after US equities were buoyed by Wall Street scaling back wagers on Federal Reserve rate hikes. Oil...
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »

Stocks waver after wholesale inflation data surprises: Stock market news todayAfter the PPI update suggests inflationary pressures persist, the focus is on Federal Reserve minutes for insight into whether the era of hikes is over.
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »

Stocks waver after inflation data surprise, Fed minutes: Stock market news todayWall Street is looking ahead to consumer inflation data on Thursday for more insight into the Fed's next move.
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »

Stocks mixed as CPI inflation holds steady: Stock market news todayStocks were mixed on Thursday as investors digested a September inflation report that some economists believe will keep the Fed on hold in November but could...
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »

Stocks drop, bond yields rise as CPI inflation holds steady: Stock market news todayStocks were lower on Thursday as investors digested a September inflation report that some economists believe will keep the Fed on hold in November but could...
출처: YahooFinanceCA - 🏆 47. / 63 더 많은 것을 읽으십시오 »